The quiet expansion of Nokia’s automotive licensing programme says more about the future of mobility than many high-profile court rulings. By licensing a fifth Chinese automaker to its 5G and Wi-Fi standard-essential patents (SEPs)—without litigation—Nokia is reinforcing a broader structural shift: connectivity has turned carmakers into long-term technology licensees, and SEPs are now part of core automotive economics.
While the identity of the latest licensee remains undisclosed, the implications are clear. Automotive SEP licensing is moving out of the experimental phase and into a repeatable, scalable commercial model.
This development also marks the starting point of a broader conversation. As connectivity expands beyond traditional telecom devices into vehicles, industrial equipment, IoT, and consumer electronics, the mechanics of SEP licensing are being stress-tested across industries that were never designed for it.
In the coming weeks, we will explore this shift in more depth—examining the structural challenges SEP holders and implementers face, how licensing models are evolving beyond one-size-fits-all platforms, and what companies entering connectivity-heavy markets need to anticipate long before disputes reach the courtroom.
From Resistance to Normalisation: The SEP Perspective
For years, the automotive sector resisted direct engagement with SEP licensing. OEMs argued that connectivity modules were the suppliers’ responsibility, not theirs. That position is steadily eroding.
Nokia’s growing portfolio of automotive licences—covering five Chinese OEMs and new Wi-Fi licences—demonstrates that the “supplier-only” argument is no longer commercially defensible. Courts, regulators, and licensing platforms have clarified that OEMs sit at the top of the value chain and therefore carry licensing responsibility.
What is particularly notable is how these deals are being concluded:
- Bilateral negotiations
- No litigation
- Predictable commercial outcomes
This points to a maturing SEP market in automotive, where:
- Portfolio value is increasingly understood
- FRAND discussions are less ideological and more financial
- Litigation is used selectively, not reflexively
SEP holders appear increasingly comfortable reserving court action for outliers, rather than as a baseline enforcement strategy.
Avanci and the Platform Effect—But Not the Whole Story
Nokia’s automotive coverage also includes extensive licensing through Avanci, which has become a cornerstone of 4G and 5G licensing for vehicles. Avanci has played a critical role in reducing transaction friction and accelerating market acceptance.
However, Nokia’s parallel success with direct bilateral deals is just as important.
This dual approach suggests a deliberate strategy:
- Platforms for scale and efficiency
- Bilateral licences for flexibility, portfolio differentiation, and bespoke commercial terms
For SEP owners, this is a sign that one-size-fits-all licensing is giving way to layered monetisation models. For automakers, it means SEP exposure cannot be addressed solely through platform participation; it requires active alignment with an IP strategy.
The Automotive Reality: Cars Are Now Long-Lifecycle Connected Products
From an automotive perspective, the logic behind signing SEP licences is becoming unavoidable.
Modern vehicles rely on:
- 5G for telematics, OTA updates, and V2X communication
- Wi-Fi for infotainment, diagnostics, and in-vehicle ecosystems
Unlike smartphones, vehicles remain in the market for 10–15 years, creating prolonged exposure to SEP obligations and enforcement risk. As OEMs scale software-defined vehicle platforms globally, legal uncertainty becomes a material business risk, not just a legal one.
This is particularly true for Chinese automakers with international ambitions. As they expand into Europe and other enforcement-active jurisdictions, early SEP licensing offers:
- Reduced injunction risk
- Clearer cost structures
- Stronger investor confidence
In this context, Nokia’s success in closing multiple Chinese OEM deals without litigation reflects pragmatic risk management by automakers, not capitulation.
Why Geely Matters—and Why It’s the Exception
This contrast is instructive.
It highlights a clear divergence in OEM strategies:
- Some treat SEPs as infrastructure costs to be managed
- Others treat them as negotiation leverage to be contested
In Europe—particularly in Germany and the UPC framework—that distinction increasingly determines outcomes. Courts have shown limited patience for prolonged refusal to license, especially where SEP holders can demonstrate consistent, good-faith licensing behaviour elsewhere in the market.
For SEP owners, this strengthens the argument that selective enforcement enhances, rather than undermines, FRAND credibility.
What This Signals for the Market
Taken together, Nokia’s automotive licensing trajectory points to several broader trends:
- Automotive SEP licensing is stabilising
The debate is shifting from whether licences are needed to how they are priced and structured. - Connectivity has reframed OEM identity
Carmakers are no longer just manufacturers—they are operators of long-term connected technology platforms. - Litigation is becoming strategic, not systemic
Courts remain essential, but primarily as leverage when commercial alignment fails. - China is no longer an SEP outlier
Chinese OEMs are increasingly integrating global IP norms into their expansion strategies.
A Joint Conclusion
The automotive sector has crossed an inflection point. As vehicles evolve into rolling software ecosystems, SEPs are no longer a peripheral legal issue—they are a core input cost of mobility innovation.
Nokia’s expanding slate of automotive SEP licences demonstrates that the market is learning to price connectivity rationally. For automakers, early engagement now looks less like a concession and more like a strategic discipline. For SEP holders, consistency and optionality—across platforms and bilateral deals—are emerging as the winning formula.
The question ahead is not whether automotive SEP licensing will continue, but how quickly it will become standard operating procedure across the global car industry.
